Volkswagen India fined for selling defective vehicle in Chennai

According to S G Ramesh Kumar of Chinmaya Nagar, he purchased a Volkswagen car from Abra Motors at Anna Nagar on April 19, 2012.Eight months later, he noticed oil-leakage in the display board of the car.TNN | November 14, 2016, 23:35 IST

CHENNAI: The district consumer disputes redressal forum, north Chennai, has slapped a fine of 55,000 on Volkswagen India and its dealer for causing mental agony to a customer by not accepting responsibility for selling a car with a manufacturing defect and instead blaming him for rash driving and causing accidental damage.

According to S G Ramesh Kumar of Chinmaya Nagar, he purchased a Volkswagen car from Abra Motors at Anna Nagar on April 19, 2012. Eight months later, he noticed oil-leakage in the display board of the car. Kumar was informed that the oil sump was leaking. On January 10, 2013 he was told that the insurance surveyor had declined insurance.

The service manager told him that the car model was being modified and he had to bear 50% of the cost - around 2 lakh - for repairs. Kumar then issued a legal notice demanding that the engine be replaced along with the oil sump. As the notice went unanswered, he sued Volkswagen India Pvt Ltd, Pune, Volkswagen Group Sales India Pvt Ltd, Mumbai and Abra Motors, Chennai.

In its counter, Volkswagen India said there was "no cause of action" against it as it had "assigned its entire rights and claims in favour of Volkswagen Group Sales India Pvt Ltd" - the dealer for direct sales. The group sales company said it dealt with servicing of vehicles through its dealers. Fixing negligence on Kumar, Abra motors said his car had hit a boulder and damaged the oil sump. He then drove the vehicle without sufficient oil, causing 'engine cease'.

A bench said there was no proof on behalf of the three parties that the car suffered accidental damage. It directed Volkswagen India and its group sales company to pay compensation and provide for a new engine and oil sump.

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